Ezdehar Management, a private equity fund manager focused on Egypt, has announced a first close of its Ezdehar Mid-Cap Fund II (EMF II) at $168m.

Investors in the fund include: IFC, the Belgian Investment Company for Developing Countries; CDC Group; the Egyptian-American Enterprise Fund; the European Bank for Reconstruction and Development; the European Investment Bank; and FMO.

"With this fund, Ezdehar was able to significantly expand its investor base to include a unique set of reputable regional and global institutions," said Emad Barsoum, Ezdehar's Founder and Managing Director.

"This fund is setting Ezdehar as the preferred partner for deploying development capital to build homegrown private sector champions in Egypt.”

EMF II will invest in businesses across important growth sectors in Egypt, including consumer and retail, business services, education, healthcare, and manufacturing.

Besides capital, the fund will provide businesses with operational and management support to help them implement best-in-class environmental, social, and governance (ESG) standards and develop into market-leading enterprises.

Private equity and venture capital play a critical role providing funding in markets where it is scarce, helping build dynamic, job-creating companies that drive growth and development.

IFC has invested $20m in the fund.

This investment reflects IFC's strategy to provide growth capital in Egypt and other emerging markets across Africa.

Over the past two fiscal years, IFC has committed and mobilised more than $716m in Egypt, supporting private businesses and economic activity through the COVID-19 pandemic.

"With the COVID pandemic continuing to present companies with unprecedented challenges, IFC remains committed to providing funding and support to businesses that need it most," said Shruti Chandrasekhar, IFC's Africa Regional Lead for Private Equity & Venture Capital Funds.

"Our investment in Ezdehar will help sustain and create jobs and promote entrepreneurship in Egypt."